Employee benefits

Employee benefits

Cars and fuel

Employer provided car benefits are calculated by reference to the CO2 emissions and the car's list price. Percentage charges are increasing year on year, and for 2015/16 range from 5% to 37% increasing for 2016/17 to 7% to 37% of the list price of the car.


Check your position to confirm that an employer provided car is still a worthwhile benefit. It may be better to receive a tax free mileage allowance of up to 45p per mile for business travel in your own vehicle.

Where private fuel is provided, the benefit charge is also based on CO2 emissions. We can review your procedures to ensure no unnecessary tax charges arise.

Cheap or interest free loans

If loans made by the employer to an employee exceed £10,000 at any point in a tax year, tax is chargeable on the difference between the interest paid and the interest due at an official rate - currently 3%. An exception applies for certain qualifying loans - please contact us for information.